CRIES of “shame” rang out in the Commons yesterday as the Government announced plans to close 27 factories employing disabled workers.

The move could see 1,700 disabled people lose their jobs, with the Remploy factories closing from August to mid- December.

The fate of a further 18 sites will be decided this summer.

Peter Hain, Labour MP for Neath in south Wales and the former secretary of state for work and pensions, said: “This is a callous, shameless betrayal of thousands of disabled workers who will never work again in areas like Neath, where 10 people are chasing every job vacancy.”

Remploy workers are employed in enterprises that vary from furniture and packaging manufacturing to operating CCTV systems and control rooms.

Steve Collins, who has worked at Remploy’s North Staffordshire facility for 20 years, said last night he was “depressed” at the closure of his factory.

This is a callous, shameless betrayal of thousands of disabled workers who will never work again in areas like Neath, where 10 people are chasing every job vacancy

Labour MP Peter Hain

The 39-year-old, with a learning disability, muscular problems and issues with speech and sight, said: “I’ll probably end up sitting at home doing nothing.

“I won’t bother looking for another job because I don’t think I’ll get one. Unemployment is rising so how will disabled people find work if fit people can’t?”

The Government revealed earlier this year it was considering closing some Remploy factories, established in 1945 as part of the creation of the welfare state. But the decision was confirmed only yesterday by Maria Miller, minister for the disabled.

She claimed the Government could no longer subsidise the loss-making sites – Remploy lost £70million in 2010/11 – and she argued its £320million budget for disabled employment services could be spent more effectively.

Ms Miller said Remploy workers were told yesterday, adding: “This is difficult news. We are doing everything to ensure Remploy workers will receive a comprehensive package of support and guidance.”

The move follows a review by Liz Sayce, chief executive of Disability Rights UK, into how the Government spends its disability employment budget.

Her report recommended Government funding should focus on support for individuals.

The minister said the report made it clear subsidised employment was not consistent with equality for disabled people.

She added: “Our approach has been led by disabled people’s organisations and disabled people themselves.”

But Mark Lever, of the National Autistic Society, said: “The closures will be devastating. The change in routine will be particularly challenging for people with autism.”

Unions insist they will press ahead with two 24-hour strikes at Remploy’s 54 factories. Unite’s Kevin Hepworth said: “By taking strike action, they are trying to avoid their certain destiny of being chucked on the economic scrapheap.”

The Daily Express’s sister paper the Sunday Express has launched a crusade to try to save Remploy jobs.